Watch Out For Auto Extended Warranty Fraud

Fraud nowadays comes in all forms and shapes but we must not forget one of the classic ways scammers have been profiting from innocent victims for decades: mail fraud.

A mail notification that your auto warranty is about to expire with an offer to buy an extended warranty plan attached may be nothing but a scam. That is exactly what Consumer Fraud Task Force, a group formed by government law enforcers and the Better Business Bureau, spotted recently in mailboxes across the country.

According to victims, the brochure looks legitimate and it leads readers to believe it was sent by the car maker. However, the true author is an independent auto extended warranty company. Consumers who bought into it said they later realized their warranty was nowhere near its expiration date and the company wouldn’t give them a refund.

Avoid being another victim of this kind of mail fraud by being informed about your car’s warranty coverage. Contact your dealer or manufacturer and request the expiration terms of your warranty. Normally warranties will be issued for 2 to 6 years or certain mileage.

Another common form of mail fraud is a solicitation or sales attempt disguised as a bill from your car dealer or manufacturer. According to the U.S. Postal Service, these misleading documents should have a clear disclaimer printed in big font (at least 30-point type) stating that it “is not a bill and you are under no obligation to pay the amount stated unless you accept the offer.”

If you suspect you’re a victim of these or any other type of fraud, follow these links to file a complaint:

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